Payday loan to travel: what does the market offer?

 

Taking vacations, whether at home or abroad, is something that the Portuguese are increasingly doing: according to the INE , 4.54 million residents in Portugal carried out at least one overnight trip outside Portugal. its usual residence in 2016, equivalent to 44.1% of the resident population (against 43.3% in 2015). However, vacations are not always accessible and, in the absence of available capital, it may be necessary to apply for a payday loan to travel.

According to a study carried out by the IPDT – Institute of Tourism, in partnership with the operator Soltrópico, 93% of 411 respondents stated that they intended to travel outside their area of ​​residence for the holidays of 2018. If for many years traveling was something that the Portuguese could not do every year, more and more are going out on vacation.

Meet new places, different cultures and expand horizons – who does not like to travel? However, from idealizing to doing it many times it is necessary to go a long way.

One of the main concerns of travelers is precisely the price, more than finding the right transport, the ideal hotel, etc. The use of credit can, in this way, contribute so that more and more Portuguese can realize the dream of traveling.

Payday loan to travel: what does the market offer?

A travel payday loan works just like any other type of personal credit: a certain amount is requested for a certain amount of time, and the amount requested will have to be repaid later with added interest.

Based on the price of a trip to the Caribbean, namely the Dominican Republic, for a couple (who receives a net monthly income of 1,600 euros), in the total amount of 2,000 euros to be repaid in 12 months, let’s see what some of the different Portuguese financial institutions :

In order to compare personal credit solutions , first pay attention to the APR (Annual Effective Annual Rate) to confront the proposals. However, never make a final decision without weighing the most important factor: the Total Amount Imputed to the Consumer (MTIC), which consists of the final amount you will actually pay with the repayment of capital, interest and procedural costs that may exist.

In analyzing the above table, it is possible to deduce that Cofidis APR (10%) is the lowest that can be found, while that of Deutsche Bank (24.1%) is the highest, which means that difference in the monthly installment between these two solutions is approximately 11 euros.

In turn, the Cetelem and Puzzle offerings (BNI Europe) are very similar in essence, with only a few cents of difference in the total amount imputed to the consumer.

Nevertheless, in the comparison exercise, despite the “cost of credit” factor, it must be taken into account whether personal credit solutions have associated insurance (in particular credit protection), which is a source of added value for the consumer .

Also, note that if you pay for the trip with a credit card instead of applying for a personal credit, you may have included travel insurance (if your card has this option). However, not all credit cards have a ceiling high enough to afford a more expensive vacation. Also, unless you want to make 100% repayment of debt, what you will pay interest on personal credit may not compensate.

What documents do I need?

Although this is something that may differ from bank to bank, a personal credit process usually requires the client to gather the following documentation (for the financial institution to conduct the usual risk analysis and to grant the best possible conditions to the consumer):

  • Identification document: Citizen Card or Identity Card and Taxpayer Card;
  • Proof of residence: an invoice for water, electricity or services;
  • Proof of IBAN;
  • Employers’ statement, which indicates the link that an employee has with a company (in the case of employees);
  • Last IRS Statement and Settlement Note.

Of course, the documents requested also vary depending on whether they are self-employed or self-employed.

Basically, and in conclusion, nothing like planning holidays in advance, because only in this way can you save not only on flights and accommodation, but also in choosing the ideal payment method, especially if you need to borrow a payday loan to travel.

 

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